Governor Gavin Newsom Halts Evictions - Homeowners and Landlords Affected
Governor Gavin Newsom signed an executive order on Monday, March 16, 2020 halting evictions for those affected by the Coronavirus. Of course, criminal activity is still grounds for eviction, but with the courts practically closed, any kind of eviction will prove to be difficult. The order extends through May 31, though it could very well be extended. What does this order mean for homeowners and landlords?
1. No Evictions for Non-Payment
Non-payment of rent is no longer grounds for eviction if caused by the impact of the Coronavirus. If tenants, residential or commercial, can’t pay rent due to the effects of the Coronavirus, they must notify their landlord within one week, along with documentation or other proof that Coronavirus measures have affected them financially. This one week notification period may differ from county to county. San Francisco County has a one week time period. Such proof might include documentation that a tenant’s business is closed, that they’ve been laid off, or that they’ve received little to no pay. Three months’ worth of bank statements showing low or reduced funds will likely also be requested by landlords.
While rent may be deferred, it is not to be mistaken for being waived. Landlords are still entitled to recover rent according to the executive order from Governor Gavin Newsom. Landlords, however, can’t evict a Coronavirus-impacted tenant for non-payment. Base rent does not change, and landlords can still collect. Eventually. Counties vary on the length of rental payment deferrment caused by COVID19. For San Francisco, rent may be deferred with proof for up to 180 days once the shelter-in-place is lifted. If after looking at proof and bank statements or P&L statements for a business, landlords may still request partial rent due each month.
2. No-fault Evictions Banned in Many Cities
San Francisco Mayor London Breed echoed the governor’s executive order, announcing that non-payment evictions are off the table into mid-April. No-fault evictions, where landlords move into a property themselves to evict tenants, are also banned. Many California cities are following suit.
The San Francisco Sheriff's apartment announced a halt in eviction assistance, meaning landlords wouldn’t have access to the normal police force to evict tenants even if they had legal grounds to do so. With courts all over the country affected by the Coronavirus, filing any legal dispute is likely to be extremely difficult to act on.
3. Mortgage Relief
What happens to homeowners who can’t make their mortgage payments? Many will be eligible for reduced payments or even suspended payments for up to a year. About half of home loans in the US have adopted forbearance policies, and it seems like the other half is following suit.
A mortgage forbearance is an agreement to stop making payments or lower your payments to an affordable level on a temporary basis during your hardship. This is not the same thing as mortgage forgiveness. Owners will still have to pay back mortgage payments deferred during the Coronavirus crisis. Like with California’s non-payment eviction halt, being eligible for forbearance requires proof that the Coronavirus has directly affected the owner. Like tenants, mortgage-holders still have to pay. Eventually.
4. No Foreclosures and Utility Shut Offs
Governor Gavin Newsom’s executive asks banks to halt foreclosures until March 31, 2020. The Trump administration also announced a suspension on homeowner foreclosures at least until the end of April.
The executive order also keeps utilities going for tenants and homeowners who can’t pay due to Coronavirus measures. Governor Newsom asked customers not to be fined for late payments on utilities like internet, gas, electricity, and water. The governor also tasked the State Utilities Commission to make sure companies are making efforts to halt utility shutoffs. In short, if you can’t pay your bills this month, the power won’t get shut off and you won’t be kicked out of your home. But as things stand, the bills aren’t going anywhere. If you are a business who is temporarily closed, this is the time to suspend or shut off your utilities so that you do not keep accruing bills for garage, water, electricity, internet, or cable.
Here’s a direct link to the Executive Order from Gavin Newsom:
https://www.gov.ca.gov/wp-content/uploads/2020/03/3.16.20-Executive-Order.pdf
Here’s a direct link to the speeches on the moratorium of evictions from San Francisco Mayor London Breed:
SUMMARY
The real estate landscape continues to change each day as the Coronavirus continues to spread globally. It’s important to partner with a well informed realtor such as our founder, Crystle Wong. Not only is she a local San Franciscan, born and raised, she is also an active participant of J Scott Scheel’s Commercial Academy and of her own global brokerage, Keller Williams. Contact Crystle today for a consultation for your residential or commercial needs in today’s ever changing market.
ABout our founder, crystle
As the CEO of a San Francisco founded, global tech startup, Crystle understands from experience what it takes to succeed. Her real estate experience spans from successfully managing multiple properties over the last decade including residential, commercial, and mixed-use, as well as her time spent actively investing in flipping properties, tax liens, tax deeds, and other property types. Crystle shares her firsthand experience and knowledge with clients through the process of buying or selling your property.
You might ask yourself, “What does a tech startup have to do with real estate?”
Good question! Everything about Crystle exudes intention. Her ultimate goal is to grow her tech company so that she can utilize its philanthropic arm to fund micro-housing for the homeless in partnership with key, long standing and successful social services organizations in San Francisco. Real Estate gives her the ability to network and learn about developing land to purchase in the future to develop the micro housing. Her time serving on boards for these non profits gives her the knowledge of what these organizations really need to be able to get more people off the streets for good.
The same cornerstones that drive success in her tech company are the same cornerstones that make her the best real estate agent to work with: honesty, transparency, integrity, and a relationship- focused mindset toward life.
Crystle was born and raised in San Francisco’s Inner Richmond district and continues to choose to establish her future life in San Francisco as well. She is a woman of her word. She not only financially supports several not-for-profits, but also regularly serves in her community helping the homeless, youth, and those in poverty.
In her spare time, she is an active and current member of the Board of Directors of Lutheran Social Services of Northern California and the APA Heritage Foundation Committee of San Francisco. She has previously and faithfully served on the Board of Directors for Zion Lutheran Church and School of San Francisco, the Board of Directors for Designing a Difference, the Board of Directors for APAPA San Francisco, a member of the Friends of Smuin Ballet, and as a Co-Chair for the Princess Project.